What Are Dividends? - Investing in Stocks


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Corporations often allocate all or part of their profits to shareholders. This is called _____.

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. Which of the following is usually an attribute of common stock?

2. Christy is buying stock. Why might she want preferred stock over common stock?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Stock is one of the ways individuals can make money from profits earned by a specific corporation. When you take this quiz, you'll be testing how well you know the intricacies of profit sharing and some of the features of stock.

Quiz & Worksheet Goals

Take this quiz to test how well you understand:

  • How corporations allocate profits
  • Characteristics of common stock
  • Attributes of preferred stock
  • Bankruptcy procedures
  • Calculating stock profits

Skills Practiced

The review materials will help you practice:

  • Interpreting information - verify that you can read information regarding profit dispersal and interpret it correctly
  • Distinguishing differences - compare and contrast topics from the lesson, such as preferred and common stock
  • Making connections - use understanding of the concept of stock value

Additional Learning

If you want to learn more about the nature of stock, check out the accompanying lesson titled What Are Dividends? - Investing in Stocks. At the end of the video lesson, you should be able to:

  • Define stock
  • Understand how stock helps make money for stockholders and corporations
  • Identify the main characteristics of common stock and its advantages
  • Know how stockholders interact with the Board of Directors
  • Describe preferred stock and its pros and cons